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HomeMy WebLinkAboutDocumentation_Regular_Tab 4A_8/10/1989 i/r r 9ii4 VILLAGE OF TEQUESTA .1`�` H . Post Office Box 3273 • 357 Tequesta Drive `,-4-`��, v Tequesta, Florida 33469-0273 • (407) 575-6200 ., FAX: (407) 575-6203 i M C. I. VILLAGE OF TEQUESTA VILLAGE COUNCIL WORKSHOP MEETING MINUTES JULY 20, 1989 I . The Tequesta Village Council held a Special Workshop Meeting at the Village Hall , 357 Tequesta Drive, Tequesta, Florida, on Thursday, July 20 , 1989 . The meeting was called to order at 9 : 20 A.M. Councilmembers present were : Mayor Joseph N. Capretta and William E. Burckart. Village Officials present were : Thomas G. Bradford, Village Manager; Wendy K. Harrison, Administrative Assistant to the Village Manager; Bill C . Kascavelis , Finance Director , and Tom Hall , Manager Tequesta Water Department . II . REVIEW OF FY 90 WATER OPERATING AND CAPITAL IMPROVEMENT FUNDS o Village Manager Bradford reviewed, pointing out on page 2 of the budget proposal , inflation and rising costs and that 4 . 5% COLA had been budgeted in addition to 3% for anticipated merit pay increases ; same increase to retirement costs as with other general employees ; 15% increase in health and life insurance premiums . o Two proposed positions added to the Water Department for _ FY90 : 1 ) Operator, in Pumping and Storage Division to cover increase manhours mandated; and 2 ) Service Technician to the Distribution Division for additional maintenance capability. o An increase in personnel expenditures does not adversely effect the debt service ratio , estimated for next fiscal year to be 1 . 36 - dropping from 1 . 6 . When that number hits 1 . 25 , the Village will be mandated to raise rates to increase revenue . A track-history needs to be done ; then a rate analysis to decide upon approach . x wi Village Council Workshop Meeting July 20, 1989 Page 2 Mayor Capretta stated conservation may solve the financial problem. He pointed out there seems to be a discrepancy on how the Village measures water ; a follow-up is needed, with a report from Tom Hall , to decide long-term impact. Mayor Capretta suggested a more accurate water bill be faciliated so citizens will be able to recognize more readily how much their water consumption is . Mr . Kascavelis pointed out to the Mayor a program has already been implemented to facilitate an accurate billing . o Mr. Bradford stated, regarding the 10-year water plan, the first five years of capital outlay for that are in the Capital Improvement Program, causing installion of a capital connection charge of $1500 . Mayor Capretta felt the new capital connection charge should turn out to be less than $1500 to help cover for the first five years of capital outlay if conservation is effective . Councilmember Burckart felt, regarding ERCs , Tequesta is 33% above where they should be in their planning , and that everyone, including commercial , needs to conserve . He felt the plan was lacking in that if Tequesta has planned for what it ' s really going to have , the quote was too high . Mr. Bradford felt that was a good argument for lower capital connection charges and that it would have to be looked at every year. For instance , regarding the Dorner tract in the C-2 district, the impact of conservation rate structures is not known : i . e . , 1 ) increasing revenues that can offset capital connection charges by way of utilizing retained earnings; or 2 ) it will radically effect consumption, which would redefine Tequesta ERCs , so the number of future ERCs could be less . Mayor Capretta felt the rate did need to be changed, but looked at every year. Any excess revenue goes to retained earnings . Mayor Capretta stated if useage can' t be reduced, the rate of increase can be reduced; only conservation will work towards reduction of useage. The Village needs to push a long-term conservation program. o Pumping and Storage Division represents cost of acquiring raw water and wells , treating well water, and storage of treated water . FY90 estimate : $914,800 . Distribution System: All costs associated with provision and maintenance of distribution network - $165 , 840 estimate for FY90 . Village Council Workshop Meeting July 20, 1989 Page 3 Mayor Capretta asked who is responsible for the capital finance requirements for the Water Department? Mr. Bradford informed him Mr . Kascavelis is responsible . Mayor Capretta felt perhaps a consultant needed to be hired who understands water plant management and financial systems so accurate and specific data might be kept and suggested a consultant be acquired . Mr. Bradford pointed out that Mike Rocca, of Gee and Jensen, who. did the rate analysis on Tequesta' s Capital Connection Charges , was actually a Utilities Financial Analyst . o Debt Service: $303 , 855 . Mr . Bradford pointed out the Village has never. borrowed money for capital expansions in the water system. o Proposed Capital Improvement Program: Centralized garage not computed toward formulation of capital connection charge . Well 24 - $364 , 000 ; Well 25 - $138 , 000 ; 1 . 3 mgd expansion plant - $413 , 000 ; 3m gal storage tank - $617 , 000 ; Mayor Capretta asked if measures were being taken to clean up the water plant area to make it more aesthetic. Mr. Hall stated he had been seeking quotes from companies to haul off the debris , but most quotes were exhorbitantly high . Mr. Burckart suggested he knew some companies which he could contact who would probably do it for much less , and agreed to make those contacts . o Equipment Replacement Program: Mayor Capretta asked if the $97 , 000 had been approved by Council to be put in the budget for the Police Department. Wendy Harrison stated this would be brought up at the next Council Meeting . XI . ADJOURNMENT There being no other matters before the Council , the meeting was adjourned at 10 : 50 A.M. Respectfully submitted, Fran Bitters • Recording Secretary /fgb DATE APPROVED: August 10 , 1989